Find available houses for sale by auction by checking online listings and newspaper advertisements. Check local auction houses to determine the scheduled auction dates. Have a preapproval letter ready before an auction and research available listings and comparable homes, advises Realtor.com.
Get a loan preapproval before attending a scheduled auction, says Realtor.com. A preapproval details the amount you can borrow upon a lender’s assessment of your credit and income. Good deals on bank-owned properties for sale by auction go quickly, meaning that as a buyer, you may not have time to work out a financing arrangement post-purchase. A preapproval also proves your ability to fund a house sold by auction.
Research available auction lists to find minimum bids on such homes and compare them with similar units to determine whether the auction price is fair. If possible, inspect the property to find its general condition and determine your bid, recommends Realtor.com.
Attend the auction prepared with either cash or a cashier’s check. Often, a cash deposit is a prerequisite for a bid because it underlines your ability to proceed with the purchase. Since foreclosed auction sales are typically sold as is, consider hiring a building inspector to evaluate the needed repairs and to make renovations after purchase.